SMEs Seek More Collateral Free Financing from Union Budget 2011-12: IndiaMART CEO Dinesh Agarwal

Tuesday, February 22, 2011

Allocation for the Sector Should be Increased to Facilitate Growth of SMEs

NEW DELHI, February 23, 2011 - With the Union Budget 2011-12 soon to be announced, Indian
Micro, Small and Medium Enterprises (MSMEs) are looking forward to key
announcements which will address their concerns and provide stimulus to the

Underlining his recommendations for the upcoming Budget, Mr.
Dinesh Agarwal, Founder and CEO,, said, "SME sector is the
backbone of the Indian economy, accounting for approximately 45% of the
manufacturing output and 40% of the total exports of the country. An
increased impetus is required for the sector in the upcoming Union Budget

The allocation for the sector should be increased to
facilitate growth of SMEs and, in turn, further boost their contribution to
manufacturing output and exports. The SME sector is a major employment
generator in the country, employing over 60 million people. Supporting their
growth will result into more employment creation. There is also a need for
more collateral free financing. Though Credit Guarantee Fund Trust for Micro
and Small Enterprises (CGTMSE) offers the same, but we need to increase its
depth to include more small scale enterprises.

We would suggest simplification of taxation for SMEs.
Currently there are multiple taxes and a complex filing processes which limit
SME growth. Introduction of GST at the earliest would be welcomed by all in
the sector if it alleviates these impending multi-taxation issues.

Also, export-based IT industry has been receiving the fillip from the
government. We, at, believe that it is important to now shift
focus to domestic IT industry which will not only generate more employment
but also build an efficient and automated ecosystem in India.

Lastly, infrastructure is an issue for small and medium businesses when
they look to expand. Government should announce more industrial zones in
better developed areas where the property prices are subsidised and access to
property is easy."

About is India's largest online B2B marketplace connecting global
buyers with suppliers through business directories, online product catalogs,
buy-sell offers, industry specific marketplaces, printed media and trade
shows participation.

Founded by Mr. Dinesh Agarwal (CEO), the company has a pan-India presence
in over 100 cities. With over 3500 employees located across 62 offices in the
country, offers an extensive range of value- added products and
services to its 1 million registered members and nearly 5 million global
buyers across various industries and verticals. has won numerous awards over the years and has been widely
covered by several media for its pioneering role in promoting SME business in
the country. Its existing investors include Intel Capital and Bennett,
Coleman & Co. Ltd.

    Media Contact

    Pawandeep Kaur
    Manager - PR
    T: +91-120-3911000

Media Contact: Pawandeep Kaur, Manager - PR, T: +91-120-3911000, E: pr at

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